Boston, MA 06/09/2014 (wallstreetpr) – A chain of bakery-café concept company, Panera Bread Co (NASDAQ:PNRA) disclosed that its board has given its nod for a fresh share buyback program to replace the existing program. The company has also announced the full commitment of its franchisees for its Panera 2.0, e-commerce platform.
Share Buy Back
The company said that its board has given an authorization of up to $600 million for share repurchase spreading a period of three years. The latest program will terminate the current program that is set to expire on August next year. Panera Bread Co (NASDAQ:PNRA) expects to buy shares from the open market or through negotiated transactions privately from time to time.
Its chairman and CEO Ron Shaich said that the latest share buyback program reflects the confidence on the company’s growth potential and its capacity to produce long-term bottom line uptick besides good returns to its shareholders.
Panera 2.0
Separately, the company disclosed that all its franchisees have given commitment to Panera 2.0, an e-Commerce platform, which will act as the backbone. Their commitment entails capital contributions to the program apart from on-going commitments to pay back the company every franchisee’s share of costs for development, as well as maintenance besides any upgrades in the future.
Panera Bread Co (NASDAQ:PNRA) CEO indicated that during the last couple of years, the company has been sharing its vision with its franchisees enabling them to be informed as well as aligned. Its CEO said that the receipt of the franchisees commitment within a period of six weeks following its formal request indicated the support for its initiatives.
The Panera Bread Co (NASDAQ:PNRA) expects to roll out its complete Panera 2.0 system in about 100 cafes before the end of the current year by which time it hopes to enable mobile and web apps in place of its Rapid Pick Up system. This platform is expected to enable Panera sustain future uptick through better customer experience.
